The Reserve Bank of India (RBI) has imposed monetary penalties on six banks, including one private sector bank, RBL Bank, and five cooperative banks, for violating various rules and regulations. The penalties range from Rs 1 lakh to Rs 61.40 lakh. RBL Bank was fined for violating Know Your Customer (KYC) rules, including failing to obtain officially valid documents and allotting multiple identification codes to some customers. The cooperative banks were fined for various infractions, including sanctioning loans to directors’ relatives, failing to maintain cash reserve ratios, and not submitting credit information to credit information companies. The RBI also took action against Sundargarh District Central Co-operative Bank Ltd of Odisha for sanctioning loans to its directors, failing to transfer unclaimed amounts, and not following proper customer due diligence processes. The penalties are intended to ensure that banks comply with regulatory requirements and maintain high standards of governance and risk management.
